1303 ET - A potential federal government shutdown adds uncertainty into a housing market that is already under pressure from high home prices and elevated mortgage rates, says Realtor.com senior economist Anthony Smith. A shutdown might discourage prospective buyers from entering the market, and risks slowing sales even more than the current market. Federal employees who are furloughed or working without pay often see their incomes delayed or reduced, making it more difficult to cover mortgages, rent and everyday expenses. If the shutdown lasts for weeks, the resulting financial strain could weaken home sales, particularly in metros with a higher share of federal workers. Past shutdowns have disrupted loan processing when agencies such as the IRS were unable to verify borrower incomes, slowing or halting mortgage activity. Consumer confidence also dips during shutdowns, Smith says. (chris.wack@wsj.com)

(END) Dow Jones Newswires

September 30, 2025 13:03 ET (17:03 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.